Foxconn's Q4 Surge: A Hidden Gem Amid Nvidia's CES 2025 Buzz

As the tech world buzzed with anticipation for Nvidia's CES 2025 keynote, investors may have overlooked a significant development: Foxconn's record-breaking fourth-quarter revenue. The Taiwanese electronics giant, which serves as a key supplier to Apple, reported a 15.17% year-over-year increase in revenue, driven by robust demand for AI servers and cloud computing products. This strong performance highlights the growing importance of AI infrastructure and the potential opportunities for investors in the sector.



Foxconn's Q4 revenue of NT$2.13 trillion ($64.83 billion) was a record high, up 15.17% year-over-year. This impressive growth was fueled by a 42.31% annual increase in December revenue to NT$654.8 billion ($19.9 billion). The company's full-year revenue reached NT$6.86 trillion ($208.59 billion), an 11.37% increase from the previous year. This remarkable performance underscores Foxconn's strategic pivot towards AI infrastructure, particularly its partnership with Nvidia for GB200 chip production.



Foxconn's expansion into AI infrastructure, coupled with its partnership with Nvidia, aligns perfectly with its traditional role as Apple's primary iPhone manufacturer. By leveraging its existing manufacturing capabilities and global footprint, Foxconn can efficiently scale AI server production and tap into new revenue streams. This strategic move not only reduces Foxconn's reliance on Apple but also positions it as a key player in the burgeoning AI market.

The partnership with Nvidia further strengthens Foxconn's position in the AI infrastructure landscape. Nvidia's GPUs are widely recognized as the industry standard for AI workloads, and Foxconn's manufacturing prowess ensures a steady supply of AI servers to meet growing demand. This collaboration allows both companies to capitalize on the surging AI market, with Foxconn benefiting from increased revenue streams and Nvidia gaining a reliable manufacturing partner for its AI servers.

As AI demand continues to surge, Foxconn's partnership with Nvidia for GB200 chip production positions it well to capitalize on this trend. The company is building what it claims will be the world's largest AI server manufacturing facility in Mexico, further solidifying its commitment to the AI infrastructure market. This strategic pivot beyond its traditional role as Apple's primary iPhone manufacturer could lead to robust stock performance, as seen in the 15.17% year-over-year revenue growth in Q4 2024.

In conclusion, Foxconn's record-breaking Q4 revenue, driven by AI server demand, signals significant growth opportunities in the coming years. As AI demand continues to surge, Foxconn's partnership with Nvidia for GB200 chip production positions it well to capitalize on this trend. Investors should take note of Foxconn's strong performance and consider the potential long-term benefits of its strategic pivot towards AI infrastructure. By diversifying its product portfolio and leveraging its existing manufacturing capabilities, Foxconn is poised to maintain its competitive edge in the electronics manufacturing industry and tap into new revenue streams.